Former DongA Bank CEO arrested for alleged banking violations

Tran Phuong Binh, former CEO of Dong A Bank, is writing a letter to apologize the bank's customers, stakeholders and employees on August 23, 2015 after he was suspended by the State Bank of Vietnam. Photo by VnExpress

Police have launched a criminal investigation into the former CEO and some employees.

Police have arrested the former CEO of Dong A Bank Tran Phuong Binh over alleged legal violations during his management of the partly private bank.

Nguyen Thi Ngoc Van, former deputy general manager, and three other employees of the Ho Chi Minh City-based bank were also detained, DongA Bank's board of directors and management board said in a statement released late Saturday.

Police have launched a criminal investigation into alleged banking and monetary violations, the bank said, without providing further details.

In its statement, Dong A reassured its more than 7 million customers that the arrests of the former officials would not affect its business operations.

The State Bank of Vietnam (SBV) in August last year suspended Binh and Van for alleged violations in financial management and lending at the bank.

Binh, 57 years old, was appointed as the bank's CEO in 1998 and vice chairman in 2013.

Dong A fell under the spotlight in 2014 when it posted a pre-tax profit of just VND35 billion ($1.5 million), down 96 percent from 2013.

The bank was put under special monitoring in August 2015 after an investigation by the SBV uncovered several violations in financial management, lending and other business activities which seriously affected the bank's financial situation and operations.

The bank was established in 1992 with charter capital of VND20 billion (nearly $900,000). As of the end of 2014, Dong A’s charter capital had risen to VND5 trillion (more than $200 million) and its total assets were valued at more than VND87 trillion (nearly $3.8 billion).